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Increases in Federal Bankruptcy Exemption Protection

Federal Bankruptcy exemptions for filing Chapter 13 Bankruptcy are adjusted for inflation every three years. These exemptions are available to both Washington and Oregon consumers. The happy news is that all the exemptions amounts have increased. See below:

Federal 11 USC 522(b) Exemption amounts

Homestead exemption raised from $21,625 to$22,975

Motor vehicle exemption raised from $3,450 to $3,675

Wild-card exemption raised from $10,825 to $11,500

Tools of trade exemption raised from $11,525 to$12,250

Limit on IRA exemption raised from $1,171,650 to$1,245,475

If you are considering filing bankruptcy, it would be well worth your time to review both your state and federal exemptions. Keep in mind though that living in Oregon or Washington doesn’t mean that you can claim the state or federal exemptions as there are additional requirements for claiming either one. Moreover, some of the federal exemptions double for married couples and some of the exemptions can be combined for greater protection

Please feel free to contact our offices if you have any questions at all regarding either the federal exemptions, the allowable amounts for both married and single filers as well as your eligibility for them.